Paper 5

International Research Journal of Business and Management IRJBM
ISSN 2322-083X
Use of Information Technology for Talent Acquisition in IT and

ITES Sector
Dr. Renu Bhargava
Director, Indira School of Business Studies
Pune, India
Abstract
Despite an era of global recession qualified staff is still rare due to the demographical
situation worldwide. Companies are forced to develop new cost saving recruitment strategies
to ensure the necessary supply of talent, while recruitment budgets are pruned. In this area,
the use of information technology creates interesting opportunities to contact candidates and
process applications, not only more economically but also more quickly. The actual value of
the contribution made by IT in HR is nevertheless still disputed. Many human resource
systems are presently being modified so they can be administered using various forms of
computer technology. These technological advances are being driven primarily by strong
demands from human resource professionals for enhancements in speed, effectiveness, and
cost containment.
Key Words: Strategic Human Resource Management, Human Resource Information
Systems, Information Technology, Strategic Human Resource Tasks, Enabled
Technology, Procurement, Talent Acquisition.
Introduction
The researcher has clearly put forth the argument for adopting Information Technology as a
functional reality for facilitating procurement of human resource within the IT sector. The
usage, implementation and impact of information technology must be weighed with respect
to the strategic direction of the firm. This study is meant to provide a perspective to the
reader to understand the relevance of adopting information technology as a suitable model
for sourcing talent. At the same time there is scope for further research to examine how
Human Resource (HR) professionals and managers in different organizations can establish
suitable model of procurement using technology with clear understanding of its effects on
strategic HR decisions regarding procurement, with respect to talent acquisition. This insight
drives the current inquiry into one of the principal levers of modern human resource
management identified as Human Resource Information System and its us talent acquisition.
This research paper is presented through case study approach and presents results obtained
from the survey of seven IT and ITES companies, regarding the use of an automated
recruiting and screening system. The system must allow, at the most fundamental level,
provision for recruiting and the automated administration of professionally developed, jobrelated questions aimed at deciphering whether an applicant meets the job requirements.
Model of information technology existing in each case has been centered on following HR
Life Cycle stages for Procurement from Vacancy to Recruitment. The purpose of this paper is
to discuss the contribution of Information Technology to staffing in emerging IT markets.
This includes a comparison of the relevant aspects of recruitment and implications derived
from case study investigation of seven IT and ITES Firms. The author of this paper concludes
that the functionality of IT in Recruitment should be supplemented with local adaption in
IRJBM ( www.irjbm.org ) November 2013 - Volume No V
Global Wisdom Research Publications All Rights Reserved.
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ISSN 2322-083X
order to achieve the best support for talent acquisition. Based on case study this paper
contends that information technology is a powerful tool in forging this link, and advocates an
increased understanding of this concept to develop its maximum potential. The study aims at
investigating what role if any does information technology play in procurement. This study
describes how Information technology is expected to drive Human Resources transition from
a focus on pure procurement to talent acquisition. This strategic role is expected not only to
add a valuable dimension to the HR function, but also change the competencies that define
HR professional and practitioner success. The researchers used two techniques to investigate
the IT impact on recruitment for these firms. Both questionnaire survey and in-depth semistructured interviews were used. Whilst the former was used to obtain responses from HR
professionals in organizations, the latter targeted a small number of senior executives, in
order to gain deeper insights into emerging issues in recruitment. The theoretical framework
for this paper is based on HR literature concerning staff Recruitment and applications of
knowledge-based systems. The argument is illustrated by data accumulated from seven IT
firms.
Research Design
Current desk research is supplemented with case study documentation of seven IT and ITES
firms and just as Bromley (1990) has described case study as a systematic inquiry into an
event or a set of related events which aims to describe and explain the phenomenon of
interest (p. 302); the field data has been used as harbinger for conceptual data, thus
establishing the contextual relevance. While there is utility in applying this method
retrospectively, it is most often used prospectively. The nature of the research questions
required that the procurement activity of each case be studied through the gathering of an
array of data. This enabled the researcher to develop greater levels of understanding about the
management of procurement in each firm utilizing IT. The interview data comprised semistructured interviews conducted with executives across a range of roles in the organisations
including: HR, IT, and Operations. Interviewees were selected on the basis of their
involvement in the decision to implement or upgrade IT in their organizations.
Literature Survey
Management scholars have long called for stronger and more explicit paths between strategic
planning and applications in human resources. Yet implementation guidance for this vital
connection has proved elusive (Lawler, E. E., Levenson, A., & Boudreau, J. W. 2004).
Although there has been a growing body of academic interest in information technology, the
majority of interest is around how information technology supports and integrates with
corporate strategy to enable competitive advantage (Broderick and Boudreau 1992; Hannon et
al 1996; Minneman 1996; Tansley et al 2001; Williams 2000), and the presence and fit in
different organisations (Ball 2001; CIPD 2007). There is limited and dated research around the
information systems skills and knowledge of the HR specialist (Bratton John and Gold Jeffrey
(2003). HRM activities such as planning and recruitment play enormous responsibilities on the
supervisors and managers alike. These activities require analyzing jobs, planning employee
needs, and sourcing requisite employee pool for selection (Dessler et al., 1999). However, the
human resource management function has faced a scuffle in justifying the use of information
technology and its position in organizations for procurement. In another development, the
need for HR to become a strategic partner is being felt increasingly, where information
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ISSN 2322-083X
technology provides management with strategic data not only in recruitment but also in
merging information technology data into large-scale corporate strategy (Buckle Patrick y,
Minette Kathleen, Dennis Joy and Michaels Jeff (2004). Thus it can be presumed that the data
collected by utilizing information technology provides management with decision-making
tool. Through proper HR management, firms are able to perform calculations that have effects
on the business as a whole. Such calculations include turnover rates and costs, time required to
fill certain jobs, return on human capital invested, and human value added. It must be noted
though, that, none of these calculations result in cost reduction in the HR function and most
notably, it supports the provision of executive reports for decision making (Gerardine
DeSanctis,1986).
Moreover, Buckley et al., (2004) in their study The use of an automated employment
recruiting and screening system for temporary professional employees: A case study,
showed conservative savings due to reduced employee turnover, reduced staffing costs, and
increased hiring-process efficiencies. The researchers revealed a cumulative savings yielded a
return on investment and that was attributable to the use of information technology.
Furthermore, Gardner et al., (2003), in their research work Virtual HR: the impact of
information technology on human resource professional investigated the extensive use IT
influence on jobs in professional occupational segment of human resources (HR). They
concluded that extensive use of IT enabled HR professional to have more information
autonomy, and it is positively associated with HR professional spending and a more time on
IT support activities. In addition, functional specialists reported increased time demands for
both transformational activities and IT support activities. More so, the result supported the
theorized impact suggesting that with more IT, HR tasks are further automated (Broderick
and Boudreau, 1992; Greengard, 1999; Groe and Pyle, 1996; Hatlevig, 1995; Wilcox, 1997).
Baran et al., (2002) examined the differences in HR practices and the effects of new HR
practices on organizational change.
Information Technology (IT) is introduced by presenting the various definitions,
development, costs and benefits, as well as their functions and relationship with HRM.
Information technology shapes an integration between human resource management (HRM)
and Information Technology. Even though these systems may rely on centralized hardware
resources operationally, a small group of Information System specialists residing within the
personnel department increasingly manage, support, and maintain them. Lando et al.,
(1994). Information technology can support planning, administration, decision-making, and
control. The system supports applications such as employee sourcing and selection and
placement, payroll, pension and benefits management, intake and training projections,
career-planning, equity monitoring, and productivity evaluation. These information systems
increase administrative efficiency and produce reports capable of improving decision-making
(Gerardine DeSanctis, 1986). Recent developments in technology have made it possible to
create a real-time information-based, self-service, and interactive work environment.
Personnel Information Systems have evolved from the automated employee recordkeeping
from the 1960s into more complex reporting and decision systems of late (Gerardine
DeSanctis, 1986: 15).Today, managers and employees are assuming activities once
considered the domain of human resource professionals and administrative personnel. This
represents a significant break with the past, but an improvement in overall organizational
effectiveness. Consequently, given the authority and relevant accessible information for
decision-making, both managers and employees respond more quickly to changes (LengnickIRJBM ( www.irjbm.org ) November 2013 - Volume No V
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ISSN 2322-083X
Halland Lengnick-Hall, 2002). Information technology as a technology-based system is used

to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information regarding
an organizations human resources (Tannenbaum 1990). Information technology also
provides a systematic procedure for collecting, storing, maintaining, retrieving, and
validating data needed by organization about its human resources, personnel activities, and
organization unit characteristics (Kovach et al., 1999).
Data Analysis
Case review in the seven IT and ITES firms centered on analyzing following aspects
related to facilitation of Talent Acquisition by utilizing Information Technology:
Use of Information Technology for Strategic Decisions regarding Talent
Acquisition
Case study analysis of the firms indicates that strategic decisions regarding acquisition are
facilitated by the utilization of information technology in these firms. However the degree
and extent of application varies.
In these firms, interventions such as Performance
management, Skill Management Systems, Productivity Assessment, Appraisal Process and
Attrition Analysis create data internally for strategic decisions regarding talent need. It is felt
by respondents that an effective information technology system must connect outcome from
all such interventions to provide data relevant for sourcing decisions. Fifty percent of the
cases had enterprise wide data availability and for such companies automated work force
planning helped strategize the employee intake for future; and for the others a combination of
information technology systems and hard data analytics firmed sourcing decisions. Two of
the stated cases have vast global presence and for them talent acquisition and talent
management is achieved by using information technology to map requirement with available
talent, for over forty thousand associates. The respondents faith in reliability of information
through information technology applications have portrayed that as the functionality is
developed into organizational analytics and modeling of data to support more strategic
decisions and predictive qualities, the risk and costs further escalate, and such organizations
are working to strengthen the systems further for zero risk functionality of using information
technology for talent acquisition.
Processes Supported by Information Technology
The case study analysis has revealed that in respondent organizations information technology
applications support planning, administration, decision-making, and control. In the said
organizations IT supports applications such as employee selection and placement, payroll,
pension and benefits management, intake and training projections, career-mapping, equity
monitoring, and productivity evaluation. The extent of utilization varies in each organization.
Such systems are utilized mainly to increase administrative efficiency and produce reports
capable of improving decision-making. In the two largest firms IT provides management with
strategic data not only in recruitment and retention strategies, but also in merging IT data into
large-scale corporate strategy. Two third of the firms visited are utilizing IT to perform
calculations that have effects on the business as a whole. Such calculations for instance,
include health-care costs per employee, pay benefits as a percentage of operating expense,
cost per hire, return on training, turnover rates and costs, time required to fill certain jobs,
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ISSN 2322-083X
return on human capital invested, and human value added. It must be noted though, that as
per the respondents, none of these calculations result in cost reduction in the HR function. At
a basic level of communication where the IT application provides access to HR information,
the system is designed to automate existing processes and provide alternatives to existing
time consuming HR functionality. However, as the systems deliver more interactive HR
functionality (e.g. transnational talent requisition and employee turnover) the complexity of
the system increases costs, involves higher degrees of organizational interaction and thus
higher risk at relying completely on technology to identify suitable talent. However for such
firms the most important implementations of IT systems are in recruitment, as the need for
diverse talent is critical with respect to peculiarity of client projects and this is followed by its
utility in Training, and Performance Management Systems.
Impact of Information Technology in Managing Talent Acquisition.
Case analysis brought forth the utilization of information technology in these firms for talent
acquisition. Such systems help to track attrition and talent shortfall and manage exit data for
future sourcing in such firms; IT application in these firms also helps to look at skill gaps at
the time of sourcing for talent and hiring decisions. The respondents stated that success of the
system for talent acquisition depended on integration of all HR systems with right output
from one system flowing in as input to the subsequent system. For instance, information on
employee development emerging from Performance Management System, which in turn
flows for competency mapping, therefore identifies need for talent acquisition. This
enterprise wide resource planning was a challenge for one third of the organizations studied,
and these organizations were still coming to grips with reliability of information. Such
organizations were combining Information technology enabled data with traditional mode of
data sync, thus enhancing the scope for analysis and process improvement. The major
challenge these firms face is in getting the right talent and getting the talent with least time
lag from time of sourcing to selection, without increased cost of sourcing.
One third of the firms stated that IT helped in acquiring talent by strategizing sourcing
partners, such as enabling sourcing for vendors, vendor development particularly for
temporary staffing, creating alternate channels for recruitment and developing referrals.
Maximum utilization of IT was witnessed for sourcing from the application stage to interview
stage, with scores for facilitating correct fitment. Moreover, the most visible function of IT
application for these firms is the output generated. To generate valuable output for computer
users, the IT applications have to process that output, make the necessary calculations, and
then format the presentation in a way that is understood. For instance staff requisition from
across strategic units in domestic and overseas destination adds new data to the database after
data have been entered into the information system. Information technologies contribute
positively to staff recruitment for global IT service providers as indicated in the cases under
review. Especially its importance was felt in minimizing turnover, as it supports allocation of
employees to international engagements, including scheduling and training. Such companies
studied have adopted to culture and local labor market differences that influence the HR
functionalities needed. The case studies indicated the necessity for local requisitions to adapt
to global needs expressed through IT. These companies feel that the development of IT over
the last twenty years has been driven by imperatives to improve the service of the HR
function, further compounded by the growth of global enterprise-wide information systems
(GEIS) which are being used and such software system allows an organization to share
common data across functional areas of enterprises operating transnational and which
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ISSN 2322-083X
produce and access information in a real-time environment. Historically human resourcing

specialists in these organizations have focused their skills and knowledge on HR management
processes, such as resourcing. An interesting response from one case under consideration
conveyed the utilization of IT to connect with new recruits for employer branding.
Challenges in utilizing IT for Talent Acquisition
Despite all seven case studies stating that the information technology implementation or
upgrade in their respective organizations is undertaken with the aim of utilizing functions that
are of a strategic nature, thereby enhancing the strategic contribution of the HR function,
further probing suggests that progress towards making these changes is being hindered by a
range of technological, managerial and organizational challenges. While some of these
challenges could be attributed to the management of new technologies in general, findings
demonstrate that several are in fact specific to HR and reflect the complex nature of the
management of people, the allocation of resources to technology implementation in areas
such as talent acquisition which can be managed without technology intervention.
The data across all the cases indicated some or all of the following challenges for the
organizations and each of these is discussed in the following section using cross-case
analysis:
An inconsistency in the importance attributed to IT for talent acquisition, resulting in
difficulties in sustaining management commitment to the project and in obtaining the
resources necessary to fully develop the new or upgraded information systems. A tendency to
underestimate the complexity of IT and its impact on the employee behavior and processes of
the organization. The barriers to user acceptance of the pervasive information technology and
the consequent underestimation of the importance of change management. Allocation of
insufficient resources to implementation of IT and, in some cases, the increased delegation of
responsibilities to vendors and consultants. The major challenge for HR management is how
to manage the tension between the need to adapt practice to meet the needs of the IT versus
customizing the technology to fit existing practices and the unpredictability involved in the
management of people. Associated with
this challenge is the decision of where to locate the management of the IT i.e. within
Information Technology or as an HR technology group within HR. Our case organizations
have varied responses to this dilemma, but all suggest that management of the system has
significant implications for knowledge transfer between IT and HR and thus the ability to
realize value from IT. This aspect opens doors for further research in delving into evolving
role of HRM in a technology savvy environment where HR becomes a facilitator to the
operations management function. Another challenge which has hindered the ability of some
of the case study organizations is the inability to exploit the potential of IT significantly, and
the reasons attributed by them is the barriers associated with the acceptance of new or
upgraded IT applications among key end-users of the system and the importance attached to
managing the change.

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Conclusions
Despite the benefits of information technology for corporations in talent acquisition such as
perfect match of talent with jobs, reduced time and costs per hire, the increased use for some
firms has also led to glut of applications. Therefore some of the companies who are forced to
find the best candidate in times of a "War for Talent need help to find this needle in a
haystack.
One solution for handling such contingency situation could be in e-commerce to recommend
products or services to customers purchasing specific products. Recommender systems could
assist the recruiter to find the adequate candidate within the applicant's database. In order to
support this search and selection process it is suggested by the researcher to conduct a design
science approach to integrate recommender systems in a holistic e-recruiting architecture and
therewith provide a complete and new solution for IT support in staff recruitment.
We conclude that the use of HR technologies is in a state of flux with most organizations
continuing to use a mix of traditional and technology-based HR methods. Furthermore,
technology-based solutions are not necessarily a panacea for HR managers: nearly a third
reported that their attempts to use HR technology have resulted in limited or moderate
success, with certain inherent challenges. At the same time, and in line with a social
constructionist approach to the study of technology challenges illustrates that utilization of
technology is also determined by the agency of its users and the social context within which it
is adopted. Therefore only through an appreciation of both the material and the social context
can a more informed understanding of the challenges that surround information technology
and its implementation for sourcing can be obtained. These socio-contextual factors are
compounded by the fact that each case study organisation has experienced significant change,
for example in ownership and structure of information technology for sourcing and other
administrative decisions. For instance staff requisition from across strategic units in domestic
and overseas destination may add new data to the database after data have been entered into
the information system. Moreover, the most visible function of an information technology is
the output generated. To generate valuable output for computer users, the information
technology have to process that output, make the necessary calculations, and then format the
presentation in a way that could be understood. However, the note of caution is that, while it
is easy to think of information systems in terms of the hardware and software packages used
to implement them and to measure them by the number of workstations, applications or users
who log onto the system, the most important elements of information technology are not the
computers, rather, the information. The bottom-line of any comprehensive information
technology have to be the information validity, reliability and utility first and the automation
of the process second.
HR professionals rely on the information technology in fulfilling job functions such as
employee requisitions by various departments or divisions. Thus, for the HR professional
there is an increasing reliance on the information technology to fulfill even the most
elementary tasks of calculating the vacant positions and its implication on cost. As human
capital plays a larger role in competitive advantage, functional managers expect the
information technology to provide functionality to meet the units goals and objectives.
Moreover, managers rely on the information technologys capabilities to provide superior
data collection and analysis, especially for resume processing, recruitment and potential
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ISSN 2322-083X
retention of sourced candidates. An important conclusion that the researcher makes here is
the importance of integrating technologies with management of HR. Developments in
Information Technology have dramatically affected traditional HR functions with nearly
every HR function such as staffing, experiencing some sort of reengineering of its processes.
However, this process of change has created significant challenges for HR professionals
resulting in the transformation of traditional processes into on-line processes. Another
advantage that has emerged and felt by respondent firms is the increased efficiency. Rapid
computing technology has allowed more transactions to occur with fewer fixed resources.
Typical examples are processing applications for filling job vacancies and matching these
with prospective candidates for better match. Though technologies of early mainframes
provided significant efficiencies in these areas, the difference is that the record processing
efficiencies that were once only available to large firms are now readily available to any
organization size. Another advantage stated by the firms is the Increased Effectiveness. Most
often, as with processes, computer technology is designed to improve effectiveness in terms
of the accuracy of information or by using the technology to simplify the process. This is
especially the case where large data sets require reconciliation. However, onerous manual
reconciliation processes may be executed faster, but also with near perfect accuracy using
automated systems. For instance, matching job requirements with candidates specifications,
Using computer technology in these processes ensures accurate results and offer substantial
simplification and timeliness over manual processing. Consequently, the vast majority of HR
functions have had some degree of automation applied in order to gain both efficiency and
effectiveness. Online recruitment centers, along with the ability to conduct virtual interviews,
background checks, and personnel tests on-line have dramatically changed sourcing and
recruitment processes, increasing the geographic reach of firms for potential employees.
In conclusion, the researcher noted that for senior HR professionals, strategic use of
technology was increasingly the norm, irrespective of company size. Significant
implementations on HR systems, particularly for IT sector firms are in recruitment, as the
need for diverse talent is critical with respect to peculiarity of client projects and this is
followed by its utility in Training, and Performance Management Systems. Information
technologies contribute positively to staff recruitment for global IT service providers as
indicated in the cases under review. Especially its importance was felt in minimizing
turnover, as it supports allocation of employees to international engagements, including
scheduling and training. Such companies studied have adopted to culture and local labor
market differences that influence the HR functionalities needed. The case studies indicated
the necessity for local requisitions to adapt to global needs expressed through technology
usage. These companies feel that the development of information technology over the last
twenty years has been driven by imperatives to improve the service of the HR function,
further compounded by the growth of global enterprise-wide information systems (GEIS)
which are being used and such software system allows an organization to share common data
across functional areas of enterprises operating transnational and which produce and access
information in a real-time environment. Historically human resourcing specialists in these
organizations have focused their skills and knowledge on HR management processes, such as
resourcing. The introduction of this technological resource suggests the introduction of new
skills and competencies for the HR specialist, in particular project management and
information systems. The requirement for these new skills and knowledge sets has been a
challenging learning journey for many within the HR profession.
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The focus of this study was to gain an insight into the current status of IT adoption in
organizations to support resourcing. For some firms technology was used mainly for
administrative purposes, that is, it played a traditional support role for functional requirement
of procurement. There are firms that utilize more sophisticated technology applications, such
as Internet-based recruiting and these more sophisticated applications tend to occur within
very large, information technology-intensive companies.
The main conclusion of this paper derived from the case studies is the realization that the use
of business information technology is in a developing and retrieval mode of application. In
spite of this, it is wise to recognize the positive influence that these systems have in the
recruiting process, and it is worth believing that information technology will gain a place in
many organizations in the short and medium term. Regarding the commonest applications of
information technology, our findings indicate that a fairly large percentage of firms rely on
these systems for at least one of the stages of the recruitment process. Nevertheless, the
presence of these applications is scarcer for the most complex and delayed in time tasks, such
as decision making processes, because they require, in return, more complex information
technology. This conclusion is therefore reinforced by the findings expressed above, since it
is the developing stage of information technology what leads to this decompensate situation.
It was also observed that two groups of organizations lead the information technology
implementation trend: the parent companies, with regard to their subsidiaries, and the largest
firms in terms of number of employees. This seems a logical finding because their more
complex structures may benefit more of the advantages of information technology to increase
the efficiency of their recruiting processes. Besides, information technology is found to be
preferred in combination with other HRM practices. This reveals that human judgement is
still the main criterion for making decisions in this area, albeit assessed or supported by the
information provided by the information technology.
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International Research Journal of Business and Management IRJBM

Use of Information Technology for Talent Acquisition in IT and

Halland Lengnick-Hall, 2002). Information technology as a technology-based system is used

produce and access information in a real-time environment. Historically human resourcing

IRJBM ( www.irjbm.org ) November 2013 - Volume No V

14. impact of information technology on human resource professional

IRJBM ( www.irjbm.org ) November 2013 - Volume No V

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